Export of Services Rules, 2005

NTF. NO. 09/2005-ST, DT. 03/03/2005 - In exercise of the powers conferred by sections 93 and 94 [OLD - sub-section (1) and sub-section (2) of section 94 ] of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules, namely:-

(In the preamble the words "sections 93 and 94" has been substituted vide NTF. NO. 13/2006-ST, DT. 19/04/2006)

1. (1) These rules may be called the Export of Services (Third Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of May, 2011.

(Rule 1 has been amended vide NTF. NO. 36/2011-ST, DT. 25/04/2011)

[OLD-

1. (1) These rules may be called the Export of Services (Second Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of April, 2011.]

(Rule 1 has been amended vide NTF. NO. 22/2011-ST, DT. 31/03/2011)

[OLD-

1. (1) These rules may be called the Export of Services (Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of April, 2011.

(Rule 1 has been amended vide NTF. NO. 12/2011-ST, DT. 01/03/2011)
[OLD-

1. (1) These rules may be called the Export of Services (Amendment) Rules, 2010.

(2) They shall come into force on the date of their publication in the Gazette of India.]

(Rule 1 has been amended vide NTF. NO. 06/2010-ST, DT. 27/02/2010)
(Rule 1 has been amended vide NTF. NO. 38/2009-ST, DT. 23/09/2009)
(Rule 1 has been amended vide NTF. NO. 25/2009-ST, DT. 19/08/2009)
(Rule 1 has been amended vide NTF. NO. 20/2008-ST, DT. 10/05/2008)
(Rule 1 has been amended vide NTF. NO. 05/2008-ST, DT. 01/03/2008)
(Rule 1 has been amended vide NTF. NO. 30/2007-ST, DT. 22/05/2007)
(Rule 1 has been amended vide NTF. NO. 02/2007-ST, DT. 01/03/2007)
(Rule 1 has been substituted vide NTF. NO. 13/2006-ST, DT. 19/04/2006)
(Rule 1 has been substituted vide NTF. NO. 28/2005-ST, DT. 07/06/2005)
2. Definitions.- In these rules, unless the context otherwise requires,-

(a) “Act” means the Finance Act, 1994 (32 of 1994);

(b) “input” shall have the meaning assigned to it in clause (k) of rule 2 of the CENVAT Credit Rules, 2004;

(c) “input service” shall have the meaning assigned to it in clause (l) of rule 2 of the CENVAT Credit Rules, 2004.

3. Export of taxable service. -

(1) Export of taxable services shall, in relation to taxable services.–

(i) specified in sub-clauses (d), (m)[OLD- sub-clauses (d)], (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc), (zzzh), (zzzr), (zzzy), (zzzz), (zzzza), (zzzzm), (zzzzu), (zzzzv) and (zzzzw) [OLD-(zzzzm) and (zzzzu) ][OLD- (zzzza), and (zzzzm)] [OLD-(zzzz) and (zzzza)] [OLD-(zzzh) and (zzzr) ] of clause (105) of section 65 of the Act, be provision of such services as are provided in relation to an immovable property situated outside India;

(In above clause (i), the brackets , letters and words "(zzzzm), (zzzzu), (zzzzv) and (zzzzw)" has been substituted vide NTF. NO. 36/2011-ST, DT. 25/04/2011)

(In clause (i) the brackets, letters and word "(zzzh), (zzzr), (zzzy), (zzzz) and (zzzza)" has been substituted vide NTF. NO. 30/2007-ST, DT. 22/05/2007)

(ii) specified in sub-clauses (a), (f), (h), (i), (j), (l), (n), (o), (w), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv), (zw), (zz), (zza), (zzc), (zzd), (zzf), (zzg), (zzi), (zzl), (zzm), (zzo), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze), (zzzf), (zzzzg), (zzzzh), (zzzzi), (zzzzk), (zzzzl) and (zzzzo) of clause (105) of section 65 of the Act, be provision of such services as are performed outside India:

[OLD -
(ii) specified in sub-clauses (a), (f), (h), (i), (j), (l), (n), (o), [OMITTED-(m), (s), (t), (u),] (w), (x), (y), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv),(zw), (zza), (zzc), (zzd), (zzf), (zzg), (zzh), (zzi), (zzl), (zzm), (zzn), (zzo), (zzp), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze),(zzzf), (zzzp), (zzzzg), (zzzzh), (zzzzi), (zzzzk), and (zzzzl) [OLD- (zzzzh) and (zzzzi)] [OLD- (zzzf) and (zzzp) ] of clause (105) of section 65 of the Act, be provision of such services as are performed outside India:]

(In above sub rule(1),(i) the brackets, letters and word "(zzzza), (zzzzm) and (zzzzu)" and (ii) substituted vide NTF. NO. 12/2011-ST, DT. 01/03/2011)
(In clause (ii), for the brackets, letters and word "(zzzf), (zzzp), (zzzzg), (zzzzh) and (zzzzi)" has been substituted vide NTF. NO. 20/2008-ST, DT. 10/05/2008)

Provided that where such taxable service is partly performed outside India, it shall be treated as performed outside India;

Provided further that where the taxable services referred to in sub-clauses (zzg), [OMITTED- (zzh)] and (zzi) of clause (105) of section 65 of the Act, are provided in relation to any goods or material or any immovable property, as the case may be, situated outside India at the time of provision of service, through internet or an electronic network including a computer network or any other means, then such taxable service, whether or not performed outside India, shall be treated as the taxable service performed outside India;.

(In above clause (ii) the brackets and letters "(zzh)" - Omitted vide NTF. NO. 22/2011-ST, DT. 31/03/2011)

(Above IInd proviso has been inserted vide NTF. NO. 05/2008-ST, DT. 01/03/2008)

(In sub-rule (1), in clause (i) the words "sub-clauses (d), (m)" - substituted & in clause (ii) the brackets and letters "(m), (s), (t), (u)" - omitted vide NTF. NO. 06/2010-ST, DT. 27/02/2010)

(iii) specified in clause (105) of section 65 of the Act, but excluding.–

(a) sub-clauses (zzzo) and (zzzv);

(b) those specified in clause (i) of this rule except when the provision of taxable services specified in sub-clauses (d),(zzzc),(zzzr) and (zzzzm) [OLD- (d), (zzzc) and (zzzr)] does not relate to immovable property; and

(c) those specified in clause (ii) of this rule, when provided in relation to business or commerce, be provision of such services to a recipient located outside India and when provided otherwise, be provision of such services to a recipient located outside India at the time of provision of such service:

Provided that where such recipient has commercial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of service only when order for provision of such service is made from any of his commercial establishment or office located outside India.

Provided further that where the taxable service referred to in sub-clause (zzzzj) of clause (105) of section 65 of the Act is provided to a recipient located outside India, then such taxable service shall be treated as export of taxable service subject to the condition that the tangible goods supplied for use are located outside India during the period of use of such tangible goods by such recipient.

(Above proviso has been inserted vide NTF. NO. 20/2008-ST, DT. 10/05/2008)

(In above Rule 3, sub-rule (1), in clause (i)- "(zzzz), (zzzza), and (zzzzm)", in clause (ii)- "(zzzzh), (zzzzi), (zzzzk), and (zzzzl)" and in clause (iii)(b)- "(d),(zzzc),(zzzr) and (zzzzm)" has been substituted vide NTF. NO. 38/2009-ST, DT. 23/09/2009)

(2) The provision of any taxable service specified in sub-rule (1) shall be treated as export of service when the following conditions are satisfied, namely:-

[OMITTED-
(a) such service is provided from India and used outside India; and]

(b) payment for such service provided outside India is received by the service provider in convertible foreign exchange.

Explanation.- For the purposes of this rule “India” includes the installations structures and vessels located in the continental shelf of India and the exclusive economic zone of India, for the purposes of prospecting or extraction or production of mineral oil and natural gas and supply thereof.

(In sub-rule (2), clause (a) - omitted & Explanation at clause (b) - substiuted vide NTF. NO. 06/2010-ST, DT. 27/02/2010)

[OLD-
Explanation.-For the purposes of this rule “India” includes the installations, structures and vessels in the continental shelf of India and the exclusive economic zone of India.]

(Above Explanation has been substituted vide NTF. NO. 25/2009-ST, DT. 19/08/2009)

[OLD-
Explanation.- For the purposes of this rule “India” includes the designated areas in the continental shelf and Exclusive Economic Zone of India as declared by the notifications of the Government of India in the Ministry of External Affairs numbers S.O. 429(E), dated the 18th July, 1986 and S.O.643(E), dated the 19th September, 1996. ]

(Sub-rule 2 has been substituted vide NTF. NO. 02/2007-ST, DT. 01/03/2007)

[OLD-
(2) The provision of any taxable service shall be treated as export of service when the following conditions are satisfied, namely:–

(a) such service is delivered outside India and used outside India; and

(b) payment for such service provided outside India is received by the service provider in convertible foreign exchange.

Explanation.– For the purposes of this rule “India” includes the designated areas in the Continental Shelf and Exclusive Economic Zone of India as declared by the notifications of the Government of India in the Ministry of External Affairs numbers S.O. 429(E), dated the 18th July, 1986 and S.O. 643(E), dated the 19th September 1996.]

(Rule 3 has been substituted vide NTF. NO. 13/2006-ST, DT. 19/04/2006)

[OLD-
3. Export of taxable service.- The export of taxable service shall mean,-

(1) in relation to taxable services specified in sub-clauses (d), (p), (q), (v), (zzq), (zzza), (zzzb), (zzzc) and (zzzh) [OLD-and (zzq)] of clause (105) of section 65 of the Act, such taxable services as are provided in relation to an immoveable property which is situated outside India;

Provided that for the purposes of this sub-rule, any taxable services provided shall be treated as export of services only if-

(a) such service is delivered outside India and used in business or for any other purpose outside India; and

(b) payment for such service provided is received by the service provider in convertible foreign exchange.

(In sub-rule (1), word, brackets and letters “and (zzq)” has been substituted & proviso inserted vide NTF. NO. 28/2005-ST, DT. 07/06/2005)

(2) in relation to taxable services specified in sub-clauses (a), (f), (h), (i), (j), (l), (m), (n), (o), (s), (t), (u), (w), (x), (y), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv), (zw), (zza), (zzc), (zzd), (zzf), (zzg), (zzh), (zzi), (zzj), (zzl), (zzm), (zzn), (zzo), (zzp), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy), (zzzd), (zzze) and (zzzf) [OLD- and (zzy)] of clause (105) of section 65 of the Act, such services as are performed outside India:

Provided that if such a taxable service is partly performed outside India, it shall be considered to have been performed outside India;

Provided further that for the purposes of this sub-rule, any taxable services provided shall be treated as export of services only if-

(a) such service is delivered outside India and used in business or for any other purpose outside India; and

(b) payment for such service provided is received by the service provider in convertible foreign exchange.

(In sub-rule (2), word, brackets and letters “and (zzy)” has been substituted & Second proviso inserted vide NTF. NO. 28/2005-ST, DT. 07/06/2005)

(3) in relation to taxable services, other than,-

(i) the taxable services specified in sub-clauses (a), (f), (h), (i), (j), (l), (m), (n), (o), (p), (q), (s), (t), (u), (v), (w), (x), (y), (z), (zb), (zc), (zi), (zj), (zn), (zo), (zq), (zr), (zt), (zu), (zv), (zw), (zza), (zzc), (zzd), (zzf), (zzg), (zzh), (zzi), (zzj), (zzl), (zzm), (zzn), (zzo), (zzp), (zzq), (zzs), (zzt), (zzv), (zzw), (zzx), (zzy), (zzza), (zzzb), (zzzd), (zzze), (zzzf) and (zzzh) [OLD-and (zzy)]; and

(ii) the taxable service specified in sub-clause (d) and (zzzc) [OLD-(d)] as are provided in relation to an immoveable property, of clause (105) of section 65 of the Act,-

(In sub-rule (3), clause (i), word, brackets and letters “and (zzy)” & in clause (ii) word, brackets and letters “(d)” has been substituted vide NTF. NO. 28/2005-ST, DT. 07/06/2005)

(i) such taxable services which are provided and used in or in relation to commerce or industry and the recipient of such services is located outside India:

Provided that if such recipient has any commercial or industrial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of services only if-

(a) order for provision of such service is made by the recipient of such service from any of his commercial or industrial establishment or any office located outside India;

(b) service so ordered is delivered outside India and used in business outside India; and

(c) payment for such service provided is received by the service provider in convertible foreign exchange;

(ii) such taxable services which are provided and used, other than in or in relation to commerce or industry, if the recipient of the taxable service is located outside India at the time when such services are received.

Explanation.- For the purposes of this rule “India” includes the designated areas in the Continental Shelf and Exclusive Economic Zone of India as declared by the notifications of the Government of India in the Ministry of External Affairs Nos. S.O.429(E), dated the 18th July, 1986 and S.O.643(E), dated the 19th September 1996. ]

4. Export without payment of service tax.- Any service, which is taxable under clause (105) of section 65 of the Act, may be exported without payment of service tax.

5. Rebate of service tax.- Where any taxable service is exported, the Central Government may, by notification, grant rebate of service tax paid on such taxable service or service tax or duty paid on input services or inputs, as the case may be, used in providing such taxable service and the rebate shall be subject to such conditions or limitations, if any, and fulfillment of such procedure, as may be specified in the notification.

(Above Rules has been added vide NTF. NO. 09/2005-ST, DT. 03/03/2005)

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